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Allstate 5, America 5, Us 5, Ron Paul 4, Canada 3, Janet Yellin 3, Ben Bernanke 3, U.s. 3, Fed 3, Feds 2, Geico 2, The Fed 2, Janet Yellen 2, Obama 2, Georgia 2, Germany 2, Riley 2, Hilton Friedman 1, Paul Volcker 1, Chris Wallace 1,
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  FOX News    Stossel    News/Business.  
   Current consumer issues.  

    October 27, 2013
    10:00 - 11:00pm PDT  

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only flood insurance covers floods. ♪ visit floodsmart.gov/pretend to learn your risk. next. . what's the fed? >> the fed? f-e-d, fed? the federal government? >> what's the fed? >> the fed? i don't know. >> most americans don't know. we give the fed enormous power. the fed loiks that. >> americans have always been reluctant to give too much financial power away. that's smart. but we still need somebody to foster conditions for a healthy economy. >> really? your dollar will be worth just as much tomorrow as it is today. >> the dollar lost 96% of its value. >> he said housing prices wouldn't crash. >> pretty unlikely possibility.
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never declined house prices on an admission wise basis. >> he said, they're not printing money. but they do. now she's going to be in charge. >> it is definitely one of the most important economic decisions i will make. >> it is one of the most important jobs in the world but the people don't know what it is. >> the fed, i don't know. >> the fed is small group of old white people who get to spend trillions of your dollars in secret. >> no secret of our government officials should spend money out of thin air. >> are you fed up with the feds? that's our show, tonight. >> i've done hundreds of tv shows. but there's one topic i've always avoided. the fed. i know it's important. more important than most stuff i
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cover but it is just so complex and dreary. people in charge even work at being dull. alan greenspan calls it fed speak, said he tried to be obscure because he didn't want to spook the markets or tip his hand about the fed's plan. bernanke and janet yellin are also. it can destroy your savings. affect whether you have a job or future. i wish there was a simple way to explain what it does. which is why i'm thankful there is a new film about the fed called money for nothing. jim brous made the film. jim, before we get to your movie, i want to play part of the movie made by the federal reserve. >> the fed is important because it keeps america's monetary system stable and growing with low inflation which fosters further growth and helps the economy going in the right direction. >> sounds good. the economy going in the right direction. >> can you argue, intentions may
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be good but results aren't always. >> you interviewed janet yellin for this film. >> yeah. i chose not to show any of her interview bits. because she was even more boring than everybody else. you get the feeling they work ats this. >> i think since greenspan there is this tradition of the span trying to operate outside of the lime light behind the cartians a little bit. and not give way its policies. >> what i especially like about your film is that it covers the rational for the fed. good intentions behind it and how those intentions sometimes make things worse. the current fed was created to reassure people when a bank failed. >> and customers would become suspicious and they would want it pull their money out of the bank and then other people would be afraid their bank would go so people want to pull their money out of deposits and withdraw the money as currency.
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>> bank would not have the money and they would just close their doors. >> something has to be done here. >> some of new york's most powerful bankers to the island off the coast of georgia to secretly negotiate plans for a central american bank. in a private railroad car, the great secrecy of this competition would foster con sircy theories for decades it come. >> why would they use false names? >> it was thought at that time, they were worried about, having two central banks, 1791 and 1816, and & we got rid of them because there was a sense they would favor the wealthy and politically connected. >> your documentary says, leaders decided to stimulate the econo economy. >> roaring '20s had a fed-induced boom and bust. at first the fed's low rates
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ununintentionally fuelled stork markets. then clamped down, setting the stage for recession and stock market crash. >> current federal reserve chairman ben bernanke says we did it, we being the federal reserve. we caused the great depression and we won't do it again. >> they wised up. they learned their lesson. >> the lesson they need to learn is that it needs to back out of markets. operate more freely that the fed creating -- >> they say we can manage it. we learn from depression, learn from inflation, we will manage it. >> it is not that good. it should play a more passive role. >> so they decide the fed happened because the fed didn't make enough money. and unemployment caused the next crisis because they printed lots of money. and the extra money caused inflation. >> u.s. promised to be the
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world's reserve currency. backed by gold. but the fed created for more dollars than it could ever redeem under gold. and now the u.s. could no longer keep that promise. >> i had directed the secretary of the treasury to suspend temporarily the convertibility of the dollar, into gold. >> for the first time in history, the dollar was just a piece of paper. >> what does this mean for you? your dollar will be worth just as much tomorrow as it is today. >> over the next decade, the cost of living more than doubled. the dollar lost more than half its value. >> so mixon was wrong. imagine that, a politician being wrong. we got inflation that was up to 13%. >> the fed keeps making the same mistake over and over again. in the 1970s, it was printing too much money. the dollar lost more than half its value in a period of ten years, right after nixon made the promise. >> inflation is low today. they had the confidence to do
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what they've done over the last few years. try to stimulate the economy by printing lots of money. to buy treasury bonds and dubious bank and they spent almost $4 trillion, a dozen people decide to create $4 trillion. they did most of this after the stimulus failed to stimulate. >> the fed upped the ante. with interest rates already at zero, the feds only way to juice the economy was to print more money. the technique called quantitative easing or qe. >> you have some degree of confidence in your ability to control this. >> a hundred percent. >> hundred percent confidence. japan's been doing quantitative easing for the last 15 years. >> not doing well. >> it just isn't working. i think the fed is engaging in experiments and they are not really letting on to that.
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>> and they get stuff wrong all the time. here is what ben bernanke said went wrong before the housing bubble burst. >> the sub prime market seems to be contained. >> wrong and sounds like they are printing money. >> sounds like they are printing money. >> nuh-uh. >> one myth out there is what that we are printing money. we're not printing money. >> is that tax money that the fed is spending? >> it is not tax money. much more akin to printing money than borrowing. >> you have been printing money. >> effectively. >> so good to jon stewart for getting that one right. >> why? >> they are creating a trillion dollars of new currency each year digitally. they aren't printing it anywhere. >> not exactly printing but creating it. >> creating it out of thin air. which shocks a lot of people, but that's the fact. >> the line in the movie that most touched me was when you say, that these two fed chairmen
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with central planning in our economy, more than ever in history in secret. >> at 500 billion of mortgages, biggest playser in the housing market -- >> by far. >> $2 trillion in government debt. >> central planning. didn't work in communist countries. >> throughout history we have seen that market economies do bett better. why are we choosing to give the fed more power and influence p. they should start handing that power back to the market. >> thank you, jim bruce. your film's great. people can, if you go to my website, can you find out how you can see it. we will play more of it throughout the show. >> when the housing bubble burst about five years ago, the fed printed more money to keep wall street afloat. >> bank of america 44.5%. >> one of the worst days ever.
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>> this mark set driven by fear. >> one that bore no relation to one of the past. involving not just the banks the fed was created to protect but the hedge funds, investment banks and insurance conglomerates. >> are you committing, in this interview, that you are not going to let any of these banks fail? that no matter what their bl balance sheet looks like, that they are goning to fail. >> not going to fail. >> so many people believe that fed saved us from another depression. economist george celledin from university of georgia studied this. they saved us, i'm told. >> they didn't save us. first of all, we've add recession, and a really bad one. now it is now over five years since the crash. >> it would have been worse if they didn't bailout all these banks and present all this money. >> as a matter of fact, it would have been a lot better.
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especially if they didn't bailout bear stearns. that got the ball rolling where other firms started taking bigger risks, the big ones with be thinking they would be bailed out too. >> and too big to bail. they even borrow money for cheaply because people assume they are too big to fail. >> there is no end to the process unless people cut the powers to the federal reserve. >> would you abolish the feds? some people say that. >> i would abolish the kind of institution it is today. we have paper dollars. that can be done by a computer regulating supply of the acco according to a sim rule. >> like bit coins. >> yes. maybe a better rule than the bit coin rule. but the point is, now we have a fed with unlimited power and discretion which means power and discretion to make huge mistakes and it doesn't show any sign of improving over time. >> and what is the alternative?
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something called free banking. >> that's right. several nations prospered and had financial stability without any central banks. canada had no central bank until some years into the depression and it didn't create it because of the depression, i want to add. >> they copied america, probably. >> they partly copied america, that's right. the canadian free currency sift women a baunch unch of banks -- >> just to be clear, each bank makes its own currency and can you trust it or not. >> right. and banks have ious. >> and reputation. >> and reputation. they were nationally branched banks. because canada allowed it and the u.s. did not at that time. they had a remarkably superior record than america. >> many banks failed in canada. >> in the great depression, it is a notorious fact that while
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we had the knead was supposed to -- we had the fed that was supposed to prevent that, in canada, not one bank failed in the 1930s. >> people around me say a few more rules would have prevented the housing crash and banking crash. that's why we need this. dodd-frank, all these pages. this is absurd. why would bureaucrats, who are supposed to enforce this, has the wisdom to prevent the housing bubble when their boss had no clue it was coming before the crash, bernanke was asked, is the housing market going to crash. >> what is the worst scenario if we see prices come down substantially. >> i guess i don't buy it. >> the feds were the last it see the crisis coming. yet at the same time, they were helping it fuel that housing boom.
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>> so now we get janet yellin. >> she won't be much different than ben bernanke. she might err even more so than the sign of easy money thae than he did. >> that's what everybody says. thank you. so far, hasn't caused that much inflation. but will that change? will we soon go to the grocery store with this in a wheel barrel fool of money in it happened in other countries. will it happen here next? coming up. next. coming out. the day we rescued riley, was a truly amazing day. without angie's list, i don't know if we could have found all the services we needed for our riley. for over 18 years we've helped people take care of the things that matter most. join today at angieslist.com
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overmany discounts to thine customers! [old english accent] safe driver, multi-car, paid in full -- a most fulsome bounty indeed, lord jamie. thou cometh and we thy saveth! what are you doing? we doth offer so many discounts, we have some to spare. oh, you have any of those homeowners discounts? here we go. thank you. he took my shield, my lady. these are troubling times in the kingdom.
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more discounts than knoweth what to do with. now that's progressive.
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♪ do you trust these? inflation today is about 2% a year. not bad. that means this dollar will be worth probably almost a dollar next year. but, 2% adds up. earlier in the show we pointed out that the dollar lost 96% of its value since the fed started. that means it takes $23 to buy what one dollar bought a hundred years ago.
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could be much worse. and if you think that's bad, this note is a $100 trillion bill, from zimbabwe where idiot rulers printed money like crazy and eventually this $100 trillion became worthless. but probably the most famous example of destructive inflation happened in germany after world war ii. germany lost the war aep and victor, including the united states within demanded restoration but germany didn't have any money to the rice banks started printing german bonds to fund reparation answers other spending. sound familiar? german marks became worth less and less. so much so that soon companies brought wheel barrels to the banks just to make their weekly payroll. and soon afterwards, inflation continued, individual shoppers would have to show up with wleel barrels to carry cash to the
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store to buy grocery. finally money was so worthless, people used it as wallpaper. now this is not war time germany. but can we suffer this inflation? the next global crisis. i assume james, we're smarter, different. >> i don't know if we're smarter. you showed ben b i'm not sure how much smarter we are at the leadership level. >> but inflation is low. they are presenting all this money. inflation is low. >> inflation is low as measured by the government. we are just waiting for the spark. it won't take much. we think they are playing with a thermostat. if the house is too cool, you
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dial it up. if it is too warm, dial it down. what they don't understand, once the behavior changes, once the spark hits, it gets out of control very quickly. this happened in the '70s. in the myanmar republic and elsewhere. that's the part they don't understand. >> and there is a bill that illustrates part of the problem. >> this is a hundred thousand mark note. they were printing so much money they ran out of ink and paper. they only printed on one side. you see, the back is blank because they didn't want to use the ink. that's how bad it was. they were physically restrained from printing more. >> people would pay before the meal. >> that's right. it would cost three times more at the end of the meal. so you negotiate up front and pay first. people from the city marched out of the country, looted farms, killed cows.
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dragged meat back to the city. just to have food. it was a lot worse than some of the anecdotes would lead you to believe. >> and it lead to anger and rise of hitler. >> correct. it fed directly into that. and other things were involved. but with inflation or hyper inflation, you get winners and losers. winners are people who can see it coming. they have hard assets. warren buffett is an example. there is land, mining rights, he was dumping dollars and getting into -- >> the industrialist is still okay because he has his factory. >> they are okay and the banker is okay. for them, dollars is a liability, not as asset. people with fine art is okay. >> so savers get killed. >> savers. annuity, retirement income. they get crushed. >> but at the moment, 2% inflation. >> first of all, 2% is not benign.
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it cuts the purchasing power of the dollar in half in 35 years and half again in another 35 years. an average lifetime is 70 years. it'll only be worth a quarter of what it was. but it is 2% for the time being. it starts slowly but can happen quickly. >> let's hope it doesn't. thank you, james ricker. we will talk to a close adviser to president obama who says we need the paul. rand paul says abolish the bill. fed. which is is? hey, it's me, progressive insurance.
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♪ >> it is long overdue. it's long overdue, we need to audit the federal reserve. >> it is past time to audit the federal reserve. >> politicians criticizing the fed. i never used to hear that. maybe because few understood the fed or even economics. but whatever the reason, this
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new interest is a good thing. and i think it happened mostly because one presidential candidate talked about the fed. for decades, he was the only politicians talking about it he, of course, is the author of end the feds. ron paul. so dr. paul, two democrats and your son want to audit the fed. you want to end it. how can you be so sure when it is so many smart people say we need the fed for stability? >> the mess we're in now is a consequence of the fed. the fed has been getting away too long for their responsibility. first, they create the artificial bubbles and again, a lot of credit for that. then the crash comes. correction comes. and then they claim that we'll print money fast andet you out of it. they get credit for the bump upward. no secret of bankers or government officials should have the authority to create money out of thin air. because they will and they will
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destroy the money. way back to ancient chinese history, they tried this and nothing worked. this is what the constitution said. nothing but gold and silver can be legal tender. i can suggest the transition is to legalize competition. >> currency competition. >> right. currency competition where the market, you know, maybe bit coin offers competition. >> which is legal, as far as -- >> yes. but the government doesn't like it, either. we have to wait and see what they do about it. they will probably crack down on it. >> when they say attach it to gold. i look at gold since 1970, and that hasn't been a stability. >> if you want to look over 500 years, an ounce of gold certainly maintained a fairly steady purchasing power. >> so this group of men has created $4 trillion. people seem fine with it.
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>> a lot of grown up people think it is fine and if you have a problem, print more. if you have a problem with debt, spend more. any type of slow down, spend more money. if people don't do it, the government will. if they don't have it, they will borrow it. print it out of thin air. >> they said it will lead it rampant inflation and we haven't had it yet. >> we haven't had rampant inflation but we have more inflation than they admit to. we had bad inflation in the 70s. i think we have a lot of inflation now. when you destroy the currency by printing a lot of money you ruin middle class, punish the poor and help the wealthy. money goes to the top 10%. not because of free market or capitalism. because of the distortion in the currency. rich get richer and middle class gets wiped out. it is the consequence of the
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money system. >> you say, we don't need a fed. but most every country has a central bank now. and you say we have bubbles and inflation because of the fed. but we have bubbles and inflation before we created the fed. >> we did, but if you look between the time we went back on the gold standard in the 1870s until world war i, it was very, very stable and very, very good -- >> nine recessions. three recessions until the 30 years up until now. >> when the feds stayed out and these recessions were very minor, got over, and the depression lasted for 15 years. and just look at what's happening in japan. they are not a booming economy. look at what is happening to us now. >> and without central banks they would be booming? >> i believe they would be. i really do. it wouldn't be perfect. there would always be problems because you always have government. but the marketplace handles these things. but there will be distortions. but they are corrected quickly.
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and the people who overextend themselves, they are punished. >> thank you, ron paul. up next, an adviser to president obama. who says ron paul is just wrong. . thank you. thank you. i got this. no, i'll get it! no, let me get this. seriously. hey, let me get it. ah, uh. i don't want you to pay for this. it's not happening, honey. let her get it. she got her safe driving bonus check from allstate last week. and it's her treat. what about a tip? oh, here's one... get an allstate agent. nice! [ female announcer ] switch today and get two safe driving bonus checks a year for driving safely. only from allstate. call an allstate agent and get a quote now. just another way allstate is changing car insurance for good. call an allstate agent and get a quote now. to book this fabulous hotel. michael, tell us why you used priceline express deals well you can see if a hotel is pet-friendly before you book it and i got a great deal without bidding. and where's your furry friend? i don't have a cat. save up to 50% during priceline's fall hotel sale.
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or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. ♪ john: some people are fed up with the federal reserve, some like ron paul wan some people are fed up with the federal reserve. but some people are for the fed. the economic adviser says we need the fed. why? >> the fed basically does two things that matter a lot for the country. the first is in normal times, it's controlling the money supplies slash interest rate decision. and by doing that, and doing it
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independently, of congressional control, it kept inflation at very manageable levels for the most part in the united states. and the second is in times that aren't normal times like big financial crises, the fed is the only thing that prevents the entire system from exploding. and that is partly why they invented the fed is when we did not have the fed and we had these big financial crises, it would bring down the entire economy in great depression like -- great depression like events. but we had the great depression after we had the fed. and before we had the fed there were plenty of recessions but they were over quickly. >> technically true on the first that fed did exist. the fed system as we have it now did not. it was like they were reverse printing money. and that's what led to the depressions. now, as you look at that -- >> you learn from that? they're smarter now?
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>> i think they have learned. they are certainly more educated. i don't know if they are more intelligent. we had the fed in the '770s. we had 13% inflation. >> yeah, true. the inflation of the '70s is not necessarily caused by the fed. but it is true that until paul volcker comes in and says, look, we will skis in inflation out of the system no matter how bad it hurts, we definitely had a rising inflation expectations environment. that was pretty tough and dark history, dark spot on the history of the fed. so i'm not meaning to say, in any way, that central bankers are only doing what is right. i'm just saying, it is important to have the fed there and there's not really an alternative. you know. if you say, well, if the fed
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weren't there, would we have not had inflation in the 1970s? i don't know. >> what about the free banking. the stossel bank can print a bill and let's choose. >> that's the way it used to be, there was no fed. every bank would print its own money. the thing is, as you might imagine, if you can print your own money, a lot of people would print money. if you don't have oversight authority that has a legal commitment to try to focus on price stability the way the fed has in its mandate, i think you run the risk of big problems. >> ron paul just argued that fed inflits bubbles and gets credit for the boom. then the bust happens. they ease money and get credit for the recovery. >> look, there is some element of truth, i think, to the view that if central banks do things
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wrong, they can inflate bubbles. i think it is rather important to emphasize. there is absolutely no efd that there are more doubles or more intense bubbles under central banks than there are when there weren't central banks. >> do you get nervous about giving a dozen people so much power or so much money. >> yeah. you know, sometimes i think we all should. look, we're americans. we're the most suspicious of authority people there are on earth. that said, i get over that suspicion when i start looking at countries where they don't make the fed independent. you tend to see much higher average inflation rates over time. >> it just confuses me that we can give a a dozen old white people the power to spend $4 trillion. >> yeah. but be a little careful with that.
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in normal times, what they're doing is, deciding whether the interest rate goes up, goes down or stays the same. >> now they are loaning money and buying all these bond. >> they are buying securities. what i was going to object to a little bit is the saying that they are spending money. when you're in an environment that what we call the zero lower bound environment where you can't lose monetary policy because you are at zero, the fed is trying to figure out how do is loosen monetary policy when you face that kind of a thing. >> and you don't worry about sudden horrible inflation. there is all this money sloshing around now. >> they printed it -- >> i worry about many things. i'm an economist. so we sit around every night worrying. we can birly sleep. but of all the things i worry about, rampant immediate danger of hyper inflation is definitely not in my top ten. because if you look, economist know a lot about what leads to
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high inflation. and it is not just the expansion of the monetary base. that's what i think a lot of the, let's call them the gold bug is, people afraid of immediate inflation, look at the expansion of money and they say, hey, hilton friedman taught us that expansion of money means inflation. what matters is not just the monetary base, it is also the velocity of money. our bank's lending is the financial system healthy. on one hand the fed is on one side printing money. if you want to think of it as that way. for every bank not lending, where as in the 2000s they were, that's doing the reverse. that's deprinting money. and when it is expanding monetary base is making up for all of the demon adverti demont.
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as it heals, the feds will get out of the position they are in. >> i hope you're right. austin goldspeed, thank you. >> you bet. >> up. in, being tortured and murdered. it didn't really happen. it is a new best he isser. she i. . . . . . . .
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♪ john: i hate to admit this, but as important i hate to admit this pu as important as the fed is, i've avoided doing shows about it. the fed is boring and confusing. when i asked people what it was, this is really a typical answer. >> what is the fed? >> the what? the fed? >> fed. >> f-e-d, fed? the federal government? >> people know very little about the federal reserve. even though it is the power to play around with trillions of our dollars. so i should report on it. but the details are boring and i work in kpttive television. so if i bore you and you stop watching, i lose my job. i lose this show. which i'd like it keep. so i've avoided this show on the fed. until now. after all, you don't see any writers putting out best sellers about the fed. well, actually, you do.
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one, brad pore and his book, is a best seller, and it is about the feds. why did you put in this boring institution. >> it is not that boring. and i write thrillers p. so my job is to give you a great beach read from cover to cover. if you walk away having learned more, that's icing on the cake. for me, the fed is fascinate pg. including how much secrecy it shrouds itself in on purpose. there were a bunch of bankers that stole out of new york city one night in 1910. didn't even use the train station. went to hoboken so no one would see them. said they were going on a duck hunting trip. they launched this plan for the third central bank. >> so two previous ones failed and had been killed. >> exactly. >> but you make it seem
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sinister. maybe they were just trying not to royal the markets. >> central banks were incredibly unpopular with the american people. all of the participants that went down to jekyll island as youed use /* /- used assumed names because they didn't want it to get out. >> because? >> because eastern bankers were hated at this time of history. >> known asth as, manipulative people. >> exactly. so they got together to save and ma nop lies the banking is itself. >> people no longer saw the need. congress closed it. they didn't want a isn't ral bank. >> they did not. second bank, 1816, andrew jackson closed it. he said it was susceptible to
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corruption. >> absolutely. you can lock at thomas payne, who add pap flet, common sense. in particular, the money was the surest road to the loss of liberty. >> all right. today, most of the so-called experts say we need a central bank. it makes sure inflation is moderate. it helps with employment. >> that's the smoke that comes out of the federal reserve. >> more than the federal reserve. talk to any smart financial person around here. >> how about this. we both like free market. everything needs to have some sort of a litness test. >> that was 20 years ago. >> milton freidman pointed out, they made a mistake and have learned from their mistakes. >> they redefined the term inflation since the 1920s.
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i picked the fed because i thought the shadowy -- everything here is not conspiracy theory. it is data about the feds that people will find fascinating wrapped in a great thriller. >> one thuing i love about your book is there is economic in one easy lesson. >> it really is economics in one easy lesson. the founders taught us that ignorance of coinage and how it works. it is important to raise these issues in the public square. >> i'm glad you brought your talent to this important subject. thank you brad thor. necessary coming up, why would you give this woman permission to spend $4 trillion of our money? secretly? secretly? ♪
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♪ john: over over the next weeks we'll hear more about janet yellen, president's nominee for fed chair. some people will praise her, others will attack her. i say, i don't care much who the chairman is. janet yellen may be scarier than some because she pushed for more stimulus but all of the candidates share the same belief that they, a dozen people, can manage our economy. what conceit. and our leaders voluntarily give them this unbelievable power. let's put it in perspective.
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our bloated government will spend $3.5 trillion this year. that's a crazy amount of money. almost double than when bill clinton was president. also this year, quietly the fed bought government bonds and bank papers, some of which is yunk. left money to bank, using the balance sheets to $3.6 trillion. just as much as our whole government spent. and most of what the fed does, it does secretly. now i don't want to trust them, i want to believe their's brilliant people who know what they're doing and mean well. but no 12 people know enough. knowledge is throughout the world. when bankers try to manage an economy, they usually make things worse. the movie about the fed explains how the fed governors felt
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pressured. >> they would tell each other, we're not going to let the inflation get out of hand this time. then the unemployment rate would rise. the whole climate of opinion was against them. >> e/* eventually, tight money did survive. but years later after the dot com bubble burst, they brut easy money back again. >> the fed softened the dot com crash with aggressive interest rate cuts. now the cuts sent off another boom. it was stimulating it put it into the housing, which create an unsustainable bubble in housing. >> we encouraged the housing boom. we, the federal reserve, urged a housing bomb. >> just hired by the fed to, we're not going to let prices fall. we are going to create enough dollar bills to lift prices of everything by a little. >> we didn't want to see people out of jobs. well intensioned. but the cons kwepss are, we
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created the innocent. >> the housing bust. >> 14 million people took home home mortgages. 7 million will lose their homes. that's crazy. >> there is a boom and a bust is likely to follow. i don't think any of us that worked at the fed take any comfort from the fact that somebody screwed up. >> echb wants to say, look, we solved our problem. we are just looking for another crisis. >> this is an experience. we've never done this before. never been here before. the federal reserve is operating by the seat of their pants. >> we're supposed to trust these people. most recently the fed printed a trillion dollars to prop up banks, some in foreign countries. more than the bailouts that the fed at least voted on.
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and what became public was only because of the freedom of information request. it was harder to find someone than i thought it would be. it was libertarians who credit the feds. >> authorizing a central bank which means there should be no federal reserve system. >> yeah. well, there is. and today, they spend trillions of o you are dollars offen in secret and people have no clue about it. >> what the fed? i don't know. >> what, the what? >> the fed. >> i don't know. >> at left a few people paid pay attention. >> central bank. >> what what's it do? >> determines monetary policy. >> what is monetary policy. >> how much money to be allowed into circulation. >> three cheers for that guy. let's hope more people start paying attention.
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we're talking about trillions of your dollars here. that's our show. see you next week. next. see you next week. i'm chris wallace. the troubled launch of the obamacare website front and center on capitol hill. >> this is more than a website problem. >> designers of the site grilled byñi lawmakers on what went wrong. >> i logged on to set up an account. i was able to do so. i never received a confirmation e-mail. it didn't work. >> kathleen sebelius under fire. >> the majority of people calling for me to resign i would say are people i don't work for. we'll discuss the obamacare rollout and